Professional, Polite, Prepared to Kill

Business tax adds to trucking burdens – Michigan

It isn’t just high fuel prices that worry Evan Stouten, president of Modular Transportation Inc. in Grand Rapids.

Modular and other Michigan trucking companiesface an additional cost posed by the new Michigan Business Tax. It’s a penalty on their use of independent owner-operators, who, in Stouten’s case, comprise about a third of his 150 drivers.

“It’s not a happy situation,” said Stouten, whose company and its affiliates bring in about $30 million in annual revenue.

The MBT surcharge on Michigan businesses has attracted the most heat from the business community and could be among the taxation issues lawmakers take up in the coming weeks.

But, “the big concern here from my carriers about the business tax is the nondeductability under the gross receipts tax,” said Walter Heinritzi, executive director of the Michigan Trucking Association in Lansing.

“Those carriers that use owner-operators as part of their business model are not able to deduct those payments to owner-operators as part of their gross receipts,” he said.  More from

Lawmakers know trucks have to run in order to keep the economy going so when they need funds, where do they go?  The trucker.  More taxes, more tolls, more fees……  They are going to drive us all out of business…


July 24, 2008 - Posted by | economy, trucking | , , ,

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